Mr Yen Supports Tax Hike

There is no better time to raise Japan’s consumption tax, former vice finance minister Eisuke Sakakibara, said on Tuesday as a rise in the tax took effect.

Japan’s sales tax has been lifted to 8 percent from 5 percent, rising for the first rise in 17 years.
The decision to lift the tax has been controversial and there are concerns that the move comes at a bad time for an economy that is getting back on its feet after a period of deflation and lackluster growth thanks to aggressive monetary and fiscal stimulus.

“I think there’s no better time to raise the consumption tax. The economy has been doing fairly well,” said Sakakibara, known as “Mr Yen” for his efforts to influence the yen’s exchange rate through verbal and official intervention as a former Vice Finance Minister of Japan in the late 1990s.
“During the last two years, the average rate of growth has been 2 percent, which is quite high for a mature economy like Japan,” Sakakibara told CNBC.

via SOURCE

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza